SMI- Tampakan: Investing in a Sustainable Future
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Transcript of SMI- Tampakan: Investing in a Sustainable Future
SMI: Investing in a Sustainable Future
Mining Philippines 201016 September 2010
Mark Williams
General Manager
The Tampakan Copper-Gold Project
• One of the largest undeveloped copper-gold deposits in Southeast Asia
• Potential to become the largest mine in the Philippines and the fifth largest copper mine in the world
• Capital investment for mine and related infrastructure in excess of USD5B
• 20+ years mine life
Proposed Project Location
Current Progress: ESIA
Milestones 2009 2010 2011
Mine ESIA
Power station, port and filter plant ESIA
Concentrate pipeline,electricity transmission system and access roads ESIA
GDP impact of the Tampakan Copper-Gold Project
• Revenue stream to the Philippine economy is estimated at USD40 billion over the life of the mine
• Potential to increase the country’s gross domestic product (GDP) by an average of 1% per year for 25 years
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
% o
f P
hilip
pine
s G
DP
Other (tax)
Other VA
Mining VA
Investment
Data Source: Centre for International Economics, July 2010 (Based on MPFS assumptions of April 2010)
Opportunities for Business and Employment
• Potential to create 10,000 jobs during the construction, and over 2,000 when the mine starts to operate
• USD5.8 billion in taxes and duties would be remitted to the Philippine government
• USD881 million to be spent on goods and services -- in the Philippines alone -- during the construction period
• USD892 million to be spent on Philippines goods and services over the initial operations phase
49%
21%
19%
4%7%
Local
Wages
Catering
Limestone
Contractors
Maintenance
and Others
Breakdown of economic opportunities
Opportunities and Challenges
• Passage of the South Cotabato Environment Code with a ban on open pit mining methods in the province remains a major concern
• SMI values the continuing stakeholder support to SMI and the Project
• RDC XII’s declaration of Tampakan as flagship mining project of the region
• South Cotabato IP Community
• Host communities
Opportunities and Challenges
• Stakeholders’ better understanding of the project and how it may affect their lives
• Timely resolution on the opposing views regarding open pit mining methods through a continuing open and transparent engagement and dialogue with all parties concerned
• Heightened communication and engagement activities to enable stakeholders arrive at an informed decision on the Project
Foundations for Investment
• Public-Private Partnership Policy of the Government
• Six priority areas pinpointed by NEDA to spur growth and development:
• housing
• mining
• electronics
• business process outsourcing
• tourism
• agri-business
• 2010-2014 Philippine Investments Promotion Plan (PIPP) drawn up by the Department of Trade and Industry focuses on eight key sectors included Mining
Moving Forward
• Submission of ESIA for proposed mining operation in 1H 2011
• Finalization of ESIAs for supporting infrastructure and facilities in 2H 2011
• Securing Free and Prior Informed Consent from host Indigenous communities
• Community consultations for resettlement
Our Commitment to Sustainable Development
• We balance social, environmental and economic considerations in how we manage our business
• In 2009, SMI contributed more than PHP 1.3 billion to the Philippine economy and invested more than PHP 79 million on community development initiatives
• SMI publicly reports on its SD performance
• SD reports published annual and preparedin accordance with the Global Reporting Initiative (GRI) guidelines
Thank You